Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93452
Authors: 
Biglaiser, Gary
Crémer, Jacques
Dobos, Gergely
Year of Publication: 
2014
Series/Report no.: 
CESifo Working Paper 4587
Abstract: 
We consider a simple two period model where consumers have different switching costs. Before the market opens, there was an incumbent who sold to all consumers. We identify the equilibrium both with Stackelberg and Bertrand competition and show how the presence of low switching cost consumers benefits the incumbent, despite the fact that it never sells to any of them.
Subjects: 
switching cost
JEL: 
D43
L13
Document Type: 
Working Paper

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